Johnston Carmichael advises on disposal of equipment rental specialists

Graham Alexander

Graham Alexander

Partner and Head of Corporate Finance

09 December 2020

The Corporate Finance team of Johnston Carmichael, Scotland’s largest independent firm of Chartered Accountants and Business Advisers, has recently supported Flowline Specialists through its acquisition by Motive Offshore Group.

Johnston Carmichael acted as lead advisers to the shareholders of Flowline Specialists, subsea equipment experts with operations in Aberdeenshire and Dubai.

Motive Offshore Group, specialist in marine equipment fabrication and rental for the back-deck and beyond, has acquired Flowline for an undisclosed figure.

The deal, which was finalised last week, is the latest development in Motive’s growth trajectory, bringing its headcount to approximately 200 and bolstering existing capabilities in the UK, Norway and UAE, whilst further increasing its European footprint.

Established in 2001, Flowline designs, engineers and manufactures its own equipment, supplying experienced technicians and support services for the handling and deployment of flexible pipes, umbilicals and cables to the offshore energy market.

The acquisition allows Motive to further implement its strategic vision of market diversification into offshore wind, power and utilities via the introduction of complementary products, services and expertise to existing and prospective clients alike.

Dave Acton, Motive CEO commented: “I’m delighted to announce such a significant step in the Motive Offshore journey. This outcome has been three years in the making and is the culmination of a 10-year working relationship, during which time we have valued Flowline as both client and supplier. We have operated as partners on a number of projects which, in itself, illustrates the respect we have for the company built by its previous owners.”

Greg Herrera, Senior Partner at EV Private Equity, which made a high-profile investment in Motive Offshore Group in 2019 added: “Despite the disruptive circumstances of 2020 both Motive and Flowline have risen to the challenge. They have delivered significant growth from 2019 and a combined turnover of £26million for 2020 is based upon a razor-sharp focus on maximum service quality, higher ESG performance and delivering lower net customer spend.”

Graeme Chalmers, COO of Flowline, commented: “Motive’s acquisition of Flowline is an exciting development for both parties; allowing us to deliver on larger projects than ever before, driving unrivalled value to our global customer base and facilitating an ever-increasing focus on the requirements of the offshore renewable energy market.”

Graham Alexander, Partner and Head of Corporate Finance at Johnston Carmichael, said: "Becoming part of the Motive Offshore Group is a significant milestone in the evolution of Flowline Specialists and provides a platform for continued growth and expansion into new markets. The additional resources of the combined entity will enable Flowline to build upon the legacy of quality and first class customer service instilled by the founding shareholders."